A leading European Technology Company (SAP) is investing 2.4 billion in the IoT and connected devices. SAP, with high hopes, believes it will alter their operational anatomy. In a recent press conference, SAP officially announced that they will spend the total budget in different IoT and connected device technology within the next five years.

Additionally, SAP also mentioned that IoT and connected devices are the future of technology. The rapid growth of IoT since 2008 has grabbed the attention of thousands of businesses. By the end of 2022, there will be more than 50 billion connected devices, which, in turn, will bring waves of opportunities for companies of different sizes.

In a recent press conference, Bill McDermott, CEO of SAP stated: “With billions of connected devices, we now have the potential to reshape society, the economy, and the environment.”

SAP’s $2.4 billion will help the company achieve new milestones in the adoption of IoT and connected devices. It’s certain; SAP’s investment will initialize some exciting initiatives.

Sap’s Future Targets

With big investments come big plans! SAP is expanding their horizon by building industrial labs in different parts of the globe including Germany, China, and Brazil.

At the end of 2016, SAP acquired a profound Norwegian IT Company – Fedem Technology AS. The company designed advanced sensors to replace human inspections with digital inspections. In conjunction with IoT, these chips and sensors can predict the condition of machinery inside a particular workspace.

In the coming years, SAP will also acquire an array of other IoT companies. Currently, SAP is trying to purchase a renowned technology company named Plat.One. The company has a common platform that allows connected devices to communicate with each other.

It’s obvious; SAP is interested in IoT companies that are scoring big time with their products. But, we’ll have to wait and see what this company will achieve in the next five years.

Massive Investment

Undoubtedly, SAP is one of the biggest names in the software industry. A recent study revealed that the yearly revenue of SAP accounts $21 billion. Interesting isn’t it!

While SAP will obtain a majority of IoT companies until 2022, there are chances for other companies to step into the game. Within a short course of time, SAP will encompass a number of other businesses inside its spectrum. However, SAP is only interested in capturing IoT technologies related to manufacturing companies, leaving the chance for others to target health, automobile, and other industries.